THE Australian sharemarket ended a third straight trading session in the red after extending earlier losses in the day on fresh concerns about European sovereign debt.
The benchmark
S&P/ASX 200 Index fell 66.4 points 1.6 per cent
to close at 4075.5.
The market opened lower on a weak lead from European stocks as investors were concerned about euro zone debt and the risk of a new recession in leading economies.
City Index senior dealer Jian Wei said market sentiment was weak, with investors reeling from disappointing US jobs data on Friday and the euro zone debt crisis.
"Traders are betting the governments or central banks have to take more action to save the . . . crisis on financial markets.
"You can see the sentiment is still flowing to low-risk, better stocks."
IG Markets analyst Ben Potter said afternoon trade was fairly neutral after the Reserve Bank of Australia announced it would leave interest rates steady as expected.
"It's a wait-and-see approach," he said.
"President Obama is due out tomorrow night to talk about his jobs plan, but I don't hold much hope for that either. It's a pretty tough environment at the moment.
"Unfortunately [the local market] really is being driven by stuff outside of Australia."
Making news in local trade, Rio Tinto shares were down $1.38, or 1.98 per cent, to $68.41 after it announced it would sell its 57.7 per cent stake in South African-based copper producer Palabora Mining because it was no longer of sufficient scale for the parent company.
Fellow miner BHP Billiton was down 82?, or 2.2 per cent, at $36.88.
Telecommunications project manager Transfield Services was down 2? at $2.26 after it was awarded a $133 million contract to help build the national broadband network.
The major banks were lower, with National Australia Bank closing down 2.77 per cent, or 63?, at $22.14.
Westpac lost 48? to $19.50, Commonwealth Bank fell 41? to $45.98 and ANZ shed 15? to $19.26.
Seven West Media was the worst-performing stock, closing down 5.1 per cent, or 16?, at $3.02 after going ex-dividend.
The price of gold in Sydney hit a record high of $US1920.44, but fell to $US1906.63 per fine ounce at the close, up $US20.63 on Monday's local close of $US1886.00.
National turnover was 2.13 billion shares changing hands for $5.56 billion. There were 265 stocks up, 780 down and 311 unchanged.
Frequently Asked Questions about this Article…
Why did the Australian sharemarket fall on the day covered by the article?
The Australian sharemarket fell after investors grew concerned about European sovereign debt and the risk of a new recession in major economies. Weak US jobs data over the prior week added to the negative sentiment, pushing the S&P/ASX 200 down as traders shifted toward lower-risk stocks.
How much did the S&P/ASX 200 Index drop and where did it close?
The S&P/ASX 200 Index fell 66.4 points, or about 1.6%, closing at 4,075.5 on the day reported in the article.
Did the Reserve Bank of Australia (RBA) change interest rates and what was the market reaction?
The RBA left interest rates steady as expected. IG Markets analyst Ben Potter described afternoon trade as fairly neutral after the decision, with the market taking a wait-and-see approach amid broader global uncertainty.
What corporate news affected miners like Rio Tinto and BHP Billiton?
Rio Tinto announced it would sell its 57.7% stake in South African copper producer Palabora Mining because the asset was no longer of sufficient scale for the parent company; Rio Tinto shares fell about $1.38 (1.98%) to $68.41. BHP Billiton also fell, down roughly 82 cents (about 2.2%) to $36.88.
How did major Australian banks perform on the day and which banks were mentioned?
Major banks were lower: National Australia Bank closed down about 2.77% (around 63 cents) to $22.14, Westpac lost about 48 cents to $19.50, Commonwealth Bank fell about 41 cents to $45.98, and ANZ shed about 15 cents to $19.26.
What happened with Transfield Services and why did its share price move?
Transfield Services was down to $2.26 after being awarded a $133 million contract to help build the national broadband network (NBN). The contract news and market conditions contributed to its intraday fall.
Did any media stocks or dividend events affect the market that day?
Yes. Seven West Media was the worst-performing stock mentioned, closing down 5.1% to $3.02 after going ex-dividend, which often causes a share price adjustment on the ex-dividend date.
What happened to gold prices in Sydney and what were the reported levels?
Gold in Sydney hit a record high intraday of US$1,920.44 per fine ounce but closed at US$1,906.63, which was up US$20.63 on Monday's local close of US$1,886.00.
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